Building a Non-Federal Share Strategy That Reflects Your Community’s Support
Behind every thriving Head Start program is a network of community partners, family members, and staff who contribute far more than just dollars. These contributions — often unrecognized — are what make up your Non-Federal Share (NFS).
At its core, NFS isn’t just a compliance requirement. It’s a reflection of your program’s connection to the community. But it still needs to be tracked, measured, and documented with precision.
Here’s our perspective, shaped by years of helping programs through GoEngage: the most successful Head Start agencies don’t just meet their NFS requirement — they build a culture around it.
What is Non-Federal Share?
Non-Federal Share (NFS) refers to contributions — monetary or non-monetary — that come from non-federal sources and help support your Head Start program. Grantees must generate at least 20% of their total approved budget through non-federal resources. This can include:
Volunteer time (e.g., classroom help, governance participation)
Donated goods or services (e.g., professional consulting, supplies)
Facility use without charge (e.g., donated space)
Cash donations or grants from non-federal entities
To be allowable, these contributions must be:
Verifiable
Reasonable and necessary
Used for approved program purposes
Valued according to federal guidelines
These contributions must be well-documented, accurately valued, and clearly aligned with your approved program goals.
Examples of Allowable In-Kind Contributions (and What to Include in Documentation)
Type of Contribution | Description | Documentation Needed | Valuation Method |
|---|---|---|---|
Volunteer time | Classroom help, parent committees | Sign-in sheets, activity logs, supervisor signature | Hourly rate based on role (e.g., BLS data) |
Donated goods | Art supplies, books, PPE | Donation receipt, fair market value statement | Retail or market equivalent |
Professional services | Legal advice, mental health consultation | Letter of service, time sheet, valuation by provider | Market rate or invoice equivalent |
Donated space or facilities | Use of a building, room, or playground | Facility agreement, usage log, statement from donor | Local rental rate per square foot |
Non-federal cash | State or private grants (non-federal funds) | Award letter, ledger documentation, disbursement records | Dollar-for-dollar |
How to Build a Strong Non-Federal Share Strategy
To build a strong, sustainable, and auditable Non-Federal Share strategy that supports your program’s goals and keeps you in compliance year after year, start with planning.
1. Start Early, Build Momentum
NFS shouldn’t feel like a year-end surprise. The strongest programs build their in-kind tracking into daily operations and start counting on Day 1 of the fiscal year — not Day 301.
Tip: Set up monthly or quarterly internal checkpoints to measure your progress. This lets you celebrate wins early and identify shortfalls before they become a scramble.
2. Engage Staff as NFS Ambassadors
From the family advocate welcoming a new parent to the fiscal team submitting reports, every staff member plays a role in capturing contributions.
Train your team to:
Spot qualifying in-kind support
Collect proper documentation (sign-in sheets, letters, receipts)
Record the right details: who, what, when, and why
When staff see how everyday actions tie into NFS, it becomes a shared responsibility — not just the job of fiscal or compliance leads.
3. Make Documentation Easy and Standardized
Let’s face it: collecting NFS documentation can be tedious if systems are manual or inconsistent. That’s where strong tools make a big difference.
With GoEngage, programs can:
Record in-kind contributions digitally and in real time
Auto-calculate fair market values
Store documents and narratives in one place
View total NFS progress throughout the year
When documentation is simplified, data quality improves — and you’re better prepared for audits, reviews, and re-competition.
4. Diversify In-Kind Contributions
Every community is different — so your in-kind strategy should reflect your local strengths — aim for a balanced mix of contributions.
Community Contributions That Count Toward Your 20% Match
Who’s Contributing? | What They Might Offer | How It Helps Your Match |
|---|---|---|
Parents and community volunteers | Classroom volunteering, meeting time | Counts as in-kind labor |
Local businesses | Donated food, furniture, pro bono services, donated supplies | Tangible goods and professional support |
Community organizations | Event space, transportation | Facility and operational support |
Retired professionals | Mentoring, training, consulting | Volunteer hours at skilled service rates |
School districts or partners | Shared teachers, classrooms, supplies | Documented non-federal contributions |
Create a matrix of all potential sources and align them with the types of contributions your program can reliably track and report.
5. Make In-Kind a Part of Your Culture — Tell the Story, Not Just the Numbers
Non-Federal Share (NFS) isn’t just a requirement to meet — it’s a powerful story of how your community rallies around children and families. When you highlight these contributions in grant narratives, annual reports, and monitoring reviews, you do more than satisfy compliance; you strengthen trust, demonstrate impact, and honor your partners.
Yet too often, in-kind tracking is siloed to fiscal teams, leaving other staff unsure of what counts — or how they can help.
The solution: Build in-kind awareness into your program’s culture.
Every staff member, from classroom aides to family service workers, should feel equipped and empowered to capture the value of community support.
Invest in regular training on:
What qualifies as in-kind under federal guidelines
How to properly value different types of contributions
How to record and track NFS contributions in your system (like GoEngage)
How to engage volunteers and partners in understanding their vital role
When in-kind collection becomes part of your everyday language and operations — not just a once-a-year task — you don't just meet your match. You amplify your mission.
Make In-Kind Work for You
At the end of the day, a strong Non-Federal Share strategy isn’t just about compliance — it’s about visibility, consistency, and community. With the right systems and mindset, you can transform NFS from a paperwork burden into a mission-aligned strength.
📢 Ready to Improve Your In-kind Tracking?
GoEngage helps Head Start teams capture, document, and celebrate every qualifying contribution — all year long.
Share this article:
By
Stacy Lewis: Senior Director of Business Development at Cleverex Systems
Stacy Lewis is the Senior Director of Business Development at Cleverex Systems, the creator of GoEngage. A trusted leader in the Head Start software space since 2001, Stacy brings over 24 years of experience, including key roles at ChildPlus, KinderSystems (COPA and California subsidy products), and Learning Genie, before joining GoEngage.
Throughout her career, Stacy has helped countless agencies optimize operations, enhance family engagement, and achieve compliance with federal and state standards. Her extensive industry knowledge and commitment to innovation continue to drive transformative solutions that empower Head Start programs to better serve children and families.
